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Auction Profile – A Dynamic Interpretation of Market Profile

Auction Profile is a new trading software tool and methodology based on the same conceptual foundation as Market Profile.  It can be used on any instrument in any timeframe.

An Auction Profile chart is simple to understand, simple to use and promotes good trading habits. There are only 4 elements on an Auction Profile chart:

1. The Balance Area

Balanced markets provide a profitable trading opportunity.   Auction Profile automatically highlights balance areas as soon as they become apparent.

balance slide

2. The Value Area

The Auction Profile trader’s edge derives from trade location.  The goal is to buy low or sell high.  The Value Area defines high and low prices in the context of the Balance Area.

APSlide3ValueArea_1 3. The Breakout Prices

Place your stops at the point that the trade’s probability of success becomes unfavorable.  Auction Profile provides clear, consistent guidance on stop location.

APSlide4Breakout

4. Target Zones

Don’t cut your winners short.  The Target Zones take the guesswork out of determining where to take profits after a breakout from balance.

APSlide5TargetZones_1

And that’s it.

Trading doesn’t have to be complicated.  Once a balance appears on the chart, the basic approach is  to buy the lower extreme or sell the higher extreme.  Setups are obvious: either there’s a balance or there isn’t; no balance, no trade.

setup slide